R59- SMCI, not easy to value IMO
I mean NVDA used to sell at a 50 PE going forward, and now around a 30 PE going forward. The main reason for this is that eps growth has slowed(about 20% going forward for fiscal 2026 vs 50% a year ago), and the PEG ratio is at 1.5 vs around..5 less than a year ago ! SMCI used to have a PE of 10 or less going forward, and now around 29. This is because growth going forward increased so much. However I can't get a good handle right now of SMCIs expected eps going forward into fiscal 2026 as NVDA gives numbers on. I would have to assume that if NVDA demand is slowing, so is SMCIs, but I could be wrong. Personally I think both NVDA and SMCI are risky plays right now, even though they've corrected 20% or so.
